Mortgage Best Rate

Only a few years ago it was easy to find a fancy loan program which would allow a remarkably low payment on a rather large loan. Remember those advertisements for 1% mortgages? It was actually possible to finance a loan for $150,000 and have a payment of less than $500 per month. Well, those programs are all gone leaving most people with only two choices. A 30 year fixed or a 15 year fixed mortgage. In addition, the fallout from these high risk loans has moved many consumers towards these more conservative fixed-rate products.

What is the best way to find the cheapest fixed rate mortgage? The Internet will be your most valuable tool for finding and comparing rates. Unfortunately, it’s not as simple as picking the lender with the lowest rate. There are other factors which must be considered to ensure you are getting the best deal. How do I know if the lender’s rate and closing costs are legitimate? The mortgage industry is one of the most regulated businesses. Despite that, it also has the highest level of fraud (as we have learned during the past two years). The most common consumer complaint is deceptive advertising. The lender advertises a specific rate and you decide to make an application. Later, at the closing you discover the rate is different than what you were told. It’s too late to do anything at that point as it would be too costly to start the process over again with another lender.

Another issue is misstating the closing costs. The lender you selected may have the cheapest costs, but many times you might find out at the closing that they have increased significantly. Again, it’s too late to do anything about it and you are stuck.

Applying for a mortgage is the largest financial decision most people make. Surprisingly, many people will go about the process without an understanding of how to do it correctly. Doing so can be a costly mistake which can affect you for the next 30 years.

The way to win is through education. Learning how to find reputable lenders which consistently have the lowest rates, how to make banks compete with each other and understanding the Good Faith Estimate are all critical when you are shopping for the best fixed rate mortgage. A simple mortgage guide or handbook will be your best resource when looking for the best fixed rate mortgage.

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